| (Mark One) | ||
|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
| For the quarterly period ended March 31, 2006 | ||
|
or
|
||
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
| For the transition period from to | ||
|
Texas and Virginia
|
75-1743247 | |
|
(State or other jurisdiction
of
incorporation or organization) |
(IRS employer
identification no.) |
|
|
Three Lincoln Centre,
Suite 1800
5430 LBJ Freeway, Dallas, Texas (Address of principal executive offices) |
75240
(Zip code) |
|
Class
|
Shares Outstanding
|
|
| No Par Value | 81,151,592 |
| GLOSSARY OF KEY TERMS | ||||||||
| PART 1. FINANCIAL INFORMATION | ||||||||
| Item 1. Financial Statements | ||||||||
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | ||||||||
| Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations | ||||||||
| Item 3. Quantitative and Qualitative Disclosures About Market Risk | ||||||||
| Item 4. Controls and Procedures | ||||||||
| PART II. OTHER INFORMATION | ||||||||
| Item 1. Legal Proceedings | ||||||||
| Item 4. Submission of Matters to a Vote of Security Holders | ||||||||
| Item 6. Exhibits | ||||||||
| SIGNATURES | ||||||||
| EXHIBITS INDEX | ||||||||
| Computation of Ratio of Earnings to Fixed Charges | ||||||||
| Letter Regarding Unaudited Interim Financial Information | ||||||||
| Certification Pursuant to Rule 13a-14(a)/15d-14(a) | ||||||||
| Certification Pursuant to Section 1350 | ||||||||
|
AEH
|
Atmos Energy Holdings, Inc. | |
|
AEM
|
Atmos Energy Marketing, LLC | |
|
AES
|
Atmos Energy Services, LLC | |
|
APB
|
Accounting Principles Board | |
|
APS
|
Atmos Pipeline and Storage, LLC | |
|
Bcf
|
Billion cubic feet | |
|
FASB
|
Financial Accounting Standards Board | |
|
FERC
|
Federal Energy Regulatory Commission | |
|
FIN
|
FASB Interpretation | |
|
Fitch
|
Fitch Ratings, Ltd. | |
|
GPSC
|
Georgia Public Service Commission | |
|
GRIP
|
Gas Reliability Infrastructure Program | |
|
KPSC
|
Kentucky Public Service Commission | |
|
LGS
|
Louisiana Gas Service Company and LGS Natural Gas Company, which were acquired July 1, 2001 | |
|
LPSC
|
Louisiana Public Service Commission | |
|
Mcf
|
Thousand cubic feet | |
|
MMcf
|
Million cubic feet | |
|
Moodys
|
Moodys Investors Services, Inc. | |
|
MPSC
|
Mississippi Public Service Commission | |
|
NYMEX
|
New York Mercantile Exchange, Inc. | |
|
RRC
|
Railroad Commission of Texas | |
|
RSC
|
Rate Stabilization Clause | |
|
S&P
|
Standard & Poors Corporation | |
|
SEC
|
United States Securities and Exchange Commission | |
|
SFAS
|
Statement of Financial Accounting Standards | |
|
TRA
|
Tennessee Regulatory Authority | |
|
TXU Gas
|
TXU Gas Company, which was acquired on October 1, 2004 | |
|
WNA
|
Weather Normalization Adjustment |
1
| Item 1. | Financial Statements |
2
|
Three Months Ended
|
||||||||
| March 31 | ||||||||
| 2006 | 2005 | |||||||
|
(Unaudited)
|
||||||||
|
(In thousands, except
|
||||||||
| per share data) | ||||||||
|
Operating revenues
|
||||||||
|
Utility segment
|
$ | 1,447,620 | $ | 1,235,377 | ||||
|
Natural gas marketing segment
|
818,629 | 512,891 | ||||||
|
Pipeline and storage segment
|
45,483 | 45,546 | ||||||
|
Other nonutility segment
|
1,595 | 1,278 | ||||||
|
Intersegment eliminations
|
(279,481 | ) | (110,007 | ) | ||||
| 2,033,846 | 1,685,085 | |||||||
|
Purchased gas cost
|
||||||||
|
Utility segment
|
1,131,885 | 912,309 | ||||||
|
Natural gas marketing segment
|
774,652 | 501,731 | ||||||
|
Pipeline and storage segment
|
211 | 4,407 | ||||||
|
Other nonutility segment
|
| | ||||||
|
Intersegment eliminations
|
(278,305 | ) | (109,256 | ) | ||||
| 1,628,443 | 1,309,191 | |||||||
|
Gross profit
|
405,403 | 375,894 | ||||||
|
Operating expenses
|
||||||||
|
Operation and maintenance
|
112,698 | 103,420 | ||||||
|
Depreciation and amortization
|
47,076 | 45,326 | ||||||
|
Taxes, other than income
|
64,796 | 54,967 | ||||||
|
Total operating expenses
|
224,570 | 203,713 | ||||||
|
Operating income
|
180,833 | 172,181 | ||||||
|
Miscellaneous (expense) income
|
(2,439 | ) | 958 | |||||
|
Interest charges
|
35,492 | 33,073 | ||||||
|
Income before income taxes
|
142,902 | 140,066 | ||||||
|
Income tax expense
|
54,106 | 51,564 | ||||||
|
Net income
|
$ | 88,796 | $ | 88,502 | ||||
|
Basic net income per share
|
$ | 1.10 | $ | 1.12 | ||||
|
Diluted net income per share
|
$ | 1.10 | $ | 1.11 | ||||
|
Cash dividends per share
|
$ | 0.315 | $ | 0.310 | ||||
|
Weighted average shares
outstanding:
|
||||||||
|
Basic
|
80,573 | 79,270 | ||||||
|
Diluted
|
81,040 | 79,760 | ||||||
3
|
Six Months Ended
|
||||||||
| March 31 | ||||||||
| 2006 | 2005 | |||||||
|
(Unaudited)
|
||||||||
|
(In thousands, except
|
||||||||
| per share data) | ||||||||
|
Operating revenues
|
||||||||
|
Utility segment
|
$ | 2,852,630 | $ | 2,149,058 | ||||
|
Natural gas marketing segment
|
1,920,474 | 1,006,692 | ||||||
|
Pipeline and storage segment
|
85,195 | 89,236 | ||||||
|
Other nonutility segment
|
3,087 | 2,637 | ||||||
|
Intersegment eliminations
|
(543,720 | ) | (193,914 | ) | ||||
| 4,317,666 | 3,053,709 | |||||||
|
Purchased gas cost
|
||||||||
|
Utility segment
|
2,256,714 | 1,568,679 | ||||||
|
Natural gas marketing segment
|
1,850,178 | 968,688 | ||||||
|
Pipeline and storage segment
|
211 | 10,628 | ||||||
|
Other nonutility segment
|
| | ||||||
|
Intersegment eliminations
|
(541,430 | ) | (192,283 | ) | ||||
| 3,565,673 | 2,355,712 | |||||||
|
Gross profit
|
751,993 | 697,997 | ||||||
|
Operating expenses
|
||||||||
|
Operation and maintenance
|
220,915 | 214,197 | ||||||
|
Depreciation and amortization
|
90,336 | 89,323 | ||||||
|
Taxes, other than income
|
110,212 | 93,622 | ||||||
|
Total operating expenses
|
421,463 | 397,142 | ||||||
|
Operating income
|
330,530 | 300,855 | ||||||
|
Miscellaneous (expense) income
|
(1,991 | ) | 1,343 | |||||
|
Interest charges
|
71,681 | 65,615 | ||||||
|
Income before income taxes
|
256,858 | 236,583 | ||||||
|
Income tax expense
|
97,035 | 88,482 | ||||||
|
Net income
|
$ | 159,823 | $ | 148,101 | ||||
|
Basic net income per share
|
$ | 1.99 | $ | 1.92 | ||||
|
Diluted net income per share
|
$ | 1.98 | $ | 1.90 | ||||
|
Cash dividends per share
|
$ | 0.63 | $ | 0.62 | ||||
|
Weighted average shares
outstanding:
|
||||||||
|
Basic
|
80,444 | 77,290 | ||||||
|
Diluted
|
80,911 | 77,769 | ||||||
4
|
Six Months Ended
|
||||||||
| March 31 | ||||||||
| 2006 | 2005 | |||||||
|
(Unaudited)
|
||||||||
| (In thousands) | ||||||||
|
Cash Flows From Operating
Activities
|
||||||||
|
Net income
|
$ | 159,823 | $ | 148,101 | ||||
|
Adjustments to reconcile net
income to net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization:
|
||||||||
|
Charged to depreciation and
amortization
|
90,336 | 89,323 | ||||||
|
Charged to other accounts
|
334 | 477 | ||||||
|
Deferred income taxes
|
58,199 | 42,605 | ||||||
|
Other
|
7,587 | 3,315 | ||||||
|
Net assets/liabilities from risk
management activities
|
(24,041 | ) | 20,247 | |||||
|
Net change in operating assets and
liabilities
|
(143,847 | ) | 96,025 | |||||
|
Net cash provided by operating
activities
|
148,391 | 400,093 | ||||||
|
Cash Flows From Investing
Activities
|
||||||||
|
Capital expenditures
|
(213,230 | ) | (137,466 | ) | ||||
|
Acquisitions
|
| (1,912,532 | ) | |||||
|
Other, net
|
(2,842 | ) | (1,957 | ) | ||||
|
Net cash used in investing
activities
|
(216,072 | ) | (2,051,955 | ) | ||||
|
Cash Flows From Financing
Activities
|
||||||||
|
Net increase in short-term debt
|
117,506 | | ||||||
|
Net proceeds from issuance of
long-term debt
|
| 1,385,847 | ||||||
|
Repayment of long-term debt
|
(2,162 | ) | (3,849 | ) | ||||
|
Settlement of Treasury lock
agreements
|
| (43,770 | ) | |||||
|
Cash dividends paid
|
(50,933 | ) | (49,211 | ) | ||||
|
Issuance of common stock
|
12,053 | 26,025 | ||||||
|
Net proceeds from equity offering
|
| 382,014 | ||||||
|
Net cash provided by financing
activities
|
76,464 | 1,697,056 | ||||||
|
Net increase in cash and cash
equivalents
|
8,783 | 45,194 | ||||||
|
Cash and cash equivalents at
beginning of period
|
40,116 | 201,932 | ||||||